This work aims at satisfy those who have
interest in banks participation in the industrial development of Nigeria,
especially the bankers throughout the world who are involved in financing
For the purpose of the study, the researcher
used the following methods in collecting data to enable her carryout an
effective study. Related literatures were received, Primary and Secondary data
such as oral interviews, news, newspapers, Journals, CBN Bullion were
used. These were not enough to supply
the information needed and to that effect, the researcher made use of
questionnaires, which she designed and distributed to the staff of banks that
are currently participating in the industrial development of Nigeria and the
general public to test hypothesis, using Chi-Square as a test techniques.
From the questionnaire collected the researcher
made these major findings:
That banks can participate extensively in
financing of industrial development in Nigeria.
That banks participation does not have any
significant impact in industrial development in Nigeria.
That the rapid growing of banks has in some
ways contributed to the industrialization process of the country.
1.1 Statement of the problem & Purpose of
1.2 The rational of the study
1.3 Significant of the study
1.4 Background of the study
1.5 Definition of terms
2.1 Theoretical Review
2.2 Empirical Review
Hypothesis of the study
Research Tool and Procedure
Source of data
Limitation of study
1.1 Hypothesis of the study
1.2 Methodology of the study
1.3 Sources of data
1.4 Limitation of the study
5.3 Recommendation for future Scholars
1.1 STATEMENT OF THE PROBLEM
PURPOSE OF THE STUDY
For any country to attain any degree of
industrialization, it must have to over-come some series of obstacles and
difficulties and it has to depend some how on some financial institutions to facilitate
This research work is then designed to
investigate the banks participation in the industrial development. A country
becomes famous among other countries of the world when it has been able to
attain a remarkable degree of industrialization.
The aim of this study is to investigate how
and the level of participation of the banks to the industrial development of
Nigeria, hence to determine the impact of financial institutions on the
industrial growth in the country. This study will also investigate on the gains
and losses of this banks that participate in one ways or the other to
industrial growth. And why some financial institution developed cold feet in
participating in industrial development.
This, this is an attempt to draw the mind of
every Nigeria to this question below.
How far has our country advanced in
industrial development through the assistance of bank?
1.2 THE RATIONAL OF THE STUDY
Industrialization means the development of
country through industries; A developing country like Nigeria is characterized
by a high degree of subsistence production. Whether a country developed or not
depends on the existing level of wealth and material welfare. The measure of
development of any country is based on its per capital income i.e dividing net
national income by the total population to get per capital income.
The banks has a major role to play the
development of any industry and the nation at large. This impact of banks to
the industrial development ranges from loan assistance, financial advices and
other areas which the bank may assist. That is why it is pertinent to research
into industries to know how far they have gone in the development of Enugu
State, and suggest more possible ways the bank could help more to our nation
SIGNIFICANTS OF THE STUDY
This study is very important to the
industrial development of this country through Bank Participation, since the
study focused on its activities. It will help the Management to know the
problems faced by industrialists in Nigeria in obtaining funs and see how best
to assist in the circumstances like this.
The industrialists will equally gain from the
study to express their own views on how they see the role played by banks to
their development in Nigeria.
Finally, academicians will also gain from the
study, it will serve as reference material to them and will enhances their
views on industrial growth in Nigeria.
BACKGROUND OF THE STUDY
There are types and classes of banks
established to developed respective sectors in the economy and they are developments
banks, Commercial banks for Commerce and industries, Merchant banks, Agricultural development
banks and other. Nigeria’s engagement in economic activities is on a
subsistence basis e.g Agriculture, Poultry, Fishing, Weaving and Mining etc.
These are small and medium Scale industries.
The above mentioned banks are given credit
guideline by the Central bank of Nigeria (CBN) on how to lend to the
industrials and these guidelines are not normally adhered to by these banks
with reasons. The 1972 indigenization decree was necessary so as to direct
financial institutions through Central Bank of Nigeria (CBN)’s credit guideline
to extend certain percentages of their total loans and advances to indigenous
borrowers to promote industrialization. Banks have their reasons for inadequate
credit to small scale and medium size enterprises like;
(i) Their attitude towards risk makes them
restrictive in their lending policy.
(ii) Many Small Scale enterprises have all
conceived projects in which they have estimate which is often ridiculously
Also problem may arise when there are
stipulations for small Scale industrialists to meet certain requirements before
they are granted loan. One of the identified problems with credit facilities
more especially the ones obtained from commercial banks to the individualists,
it’s short-term nature and high interest rate, which will not enable the
individual have enough time to recoup the funds invested e.g investment on farm
implements lime tractors and harvesters e.t.c. To recoup the money invested on
these implements will take some time because they are capital investment and
need a long tenure of repayment.
DEFINITION OF TERMS
1. Development Banks:- Refers to institutions
established to encourage the economic growth of a nation. The banks are seen as a vehicle for
mobilization of channeling medium and long term Capital with the production
sector of entrepreneurship and technical assistance.
2. Industrialization: Is the process of
developing the capacity of a country to master and locate within its borders
the whole industrial production process of intermediate products for other
industries, fabrication of the machines and tools required for the manufacture
of the desired product and of other machines, skills to operate.
3. Bank: A bank can be defined as an
institution or establishment for safe keeping lending and exchange of money.
4. Credit Facilities: This refers to those facilities
which the bank grants to their customer. This include loans and advances as
well as overdraft.
5. Loan: This refers to a facility which a
bank grant to its customers of which the customer is expected to repay the
amount at a due date. Interest is paid at the end of each mouth.
6. Overdraft: Is a situation whereby a
customer is a allowed to overdraw his account subject to a maximum limit during
a given period of time, usually a year. This is short-term financing.